Global Economy
Saudi Arabia Opens Mecca Property Market to Global Investors
Riyadh has lifted longstanding restrictions, allowing foreign capital to acquire stakes in real‑estate developers operating in Mecca and permitting overseas Muslims to purchase property in the holy city. The policy supports the $27 billion Masar project led by Umm Al‑Qura for Development and Construction and fits Saudi Arabia’s strategy to generate $100 billion of yearly foreign direct investment by 2030, driven by the steady demand from Hajj and Umrah pilgrims.
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Saudi Arabia Lifts Barrier to Foreign Capital in Mecca
On Friday, 13 February 2026, the Saudi Ministry of Housing announced that foreign investors can now take equity positions in real‑estate developers operating in Mecca. The decree also permits overseas Muslims to purchase residential and commercial units in the holy city, marking a decisive step toward opening the Kingdom’s tightly‑controlled property market.
Masar development, a $27 billion master‑plan driven by Umm Al‑Qura for Development and Construction, is the flagship project that will benefit most from the new policy. Since its 2024 IPO, the developer’s share price has risen about 17 %, supported by institutional shareholders such as Vanguard Group, HSBC Holdings, State Street Corporation, BlackRock, and a sizable holding by the Public Investment Fund (PIF).
Industry estimates suggest that roughly $60 billion worth of real‑estate projects are either under construction or slated for development in Mecca. Because the city is land‑locked and space is extremely limited, plots adjacent to the Grand Mosque now trade at around $87,000 per square metre – among the highest prices globally.
Why Mecca Is a Magnet for Investors
- Steady demand from the Hajj (≈2 million pilgrims annually) and Umrah.
- Saudi Arabia’s broader shift away from oil‑price volatility toward assets that generate recurring cash‑flows.
- Government goal of attracting $100 billion of annual foreign direct investment by 2030.
International interest is already materialising. Indonesia’s sovereign wealth fund, Danantara, has signalled intent to deploy more than $1 billion – primarily in hospitality projects. Roughly 40 % of high‑net‑worth Muslim investors looking at Mecca have budgets exceeding $5 million.
Higher property values are also reflected in pilgrimage costs. In the United Kingdom, the price of a Hajj package rose to between $10,000 and $14,000 per person in 2025, almost double pre‑pandemic levels.
These developments underline Riyadh’s strategic pivot: leveraging the unique, structural demand for religious tourism to diversify the Saudi economy and meet ambitious investment targets.